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Cases - Trade Finance Alternatives for Export Companies
Are you selling goods or services to companies in other countries? Although expanding your company beyond your nat
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ional borders is very exciting and profitable, it will also subject you to the payment habits of your foreign cust
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
omers. Many times, customers can take as long as 60 days to pay for their goods. Although large export companies c
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
n wait that long to get paid, most small and medium sized businesses can't. This creates a cash flow problem.
Of
Of
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
course, you can always ask your customers to pay you immediately by bank wire as soon as the invoice is presented.
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
However, few customers will abide by that request and you risk loosing business to the competition.
Going to the
Going to the
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
bank to get a business loan or bridge financing may help, if your business is established, can provide three years
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
of financial statements and if your personal credit is stellar. But, what if you don't meet banking criteria? Or
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
are a startup? Then you should consider trade finance. Trade financing enables you to finance your local and forei
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
n sales and can provide the working capital that your company needs.
Accounts receivable factoring, a popular tra
Accounts receivable factoring, a popular tra
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
de finance tool among exporters, allows you get paid for your export invoices in as little as two days. It elimina
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
tes the 60 day payment wait and enables you to get your paid immediately. This provides you with working capital t
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
pay suppliers and employees.
Export factoring is relatively simple to use and integrates well with most companie
Export factoring is relatively simple to use and integrates well with most companie
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
s. It works as follows:
1. You deliver the goods or services to your foreign client and send an invoice
2. You s
1. You deliver the goods or services to your foreign client and send an invoice
2. You s
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
end a copy of the invoice to the factoring company
3. The factoring company advances you up to 85% of your invoic
3. The factoring company advances you up to 85% of your invoic
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
as a first installment
4. One your invoice is paid, the factoring company will rebate you the remaining 15% as a
4. One your invoice is paid, the factoring company will rebate you the remaining 15% as a
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
second installment, less their fee
No two factoring companies will price an opportunity the same way, however mo
No two factoring companies will price an opportunity the same way, however mo
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
st factoring rates go from 1.5% to 3.0% per month. Rates vary based on the commercial credit quality of your clien
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
s, your industry and the amount of financing that you need.
As opposed to most trade finance solutions, factoring
As opposed to most trade finance solutions, factoring
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
is easy to obtain and can be setup in a few days. This makes it an ideal solution for small and midsize companies
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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